2. Giant Company manufactures bicycles. Classify each of the following costs using these codes (more than one code may apply). a.Direct Materials......b. Direct Labor......c. Manufacturing Overhead......d. Period Costs......e.Prime Costs......f.Conversion Costs

1. Rent on manufacturing equipment @ $2,000 per mo.

8. Miscellaneous lubricants, solder @ $1.20 per bike.

2. Insurance on factory building, $750 per month.

9. Property taxes on manufacturing building, $2400/yr.

3. Raw materials (tires, frames, etc.) $80/bicycle

10. Manufacturing supervisor's salary, $3,000/month

4. Utility costs in the factory, $1,000 per month.

11. Advertising for the bicycles, $30,000/year.

5. Supplies for the administrative office, $800 per month.

12. Sales commissions, $10.00 per bicycle.

6. Wages for assembly line workers, $30 per bicycle.

13. Depreciation on factory equipment.

7. Depreciation on president's computer, $650/month.

3. Wicklow Company manufactures computers. Classify each of the following costs into one of the following categories.a.Direct Material.........b. Direct Labor........c. Manufacturing Overhead.......d. Period Cost